Jaguar Land Rover will cut 4,000 jobs to reduce costs and compete with China
The company aims to achieve $2.3 billion in savings over the next two years.
Jaguar Land Rover (JLR) has announced plans to reduce its workforce by nearly 10% over the next two years, cutting around 4,000 jobs and aiming to save £1.7 billion ($2.30 billion). The luxury carmaker, owned by India's Tata Motors, operates 17 sites in England and employs 43,000 people globally, with 34,000 based in the UK. JLR CEO PB Balaji stated that the automotive industry is facing significant challenges due to technological advancements, intense competition, and geopolitical uncertainty.
The job cuts are a blow to the UK government, which is trying to stimulate economic growth ahead of an expected tough budget in late October.
Finance Minister John Healey addressed the issue in Coventry, attempting to provide a more optimistic outlook for the country's economy. Business Minister Jonathan Reynolds spoke with Balaji and is set to meet with the company and trade unions to discuss the situation. Prime Minister Andy Burnham's spokesperson acknowledged the challenges faced by the automotive sector globally and the uncertainty and concern for workers and their families.
Additionally, the voluntary redundancy program will primarily impact 26,000 salaried and management employees. JLR plans to launch five new products within the next year and invest £15 billion to £18 billion over the next five years in electrification, digital technologies, advanced manufacturing, and customer experience improvements.
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- UK’s Jaguar Land Rover to cut 10% of workforce under turnaround plan sabcnews.com
- Jaguar Land Rover will cut 4,000 jobs to reduce costs and compete with China winnipegfreepress.com
